LONDON -- Successful investors use a disciplined approach to picking stocks, and checklists can be a great way to make sure you've covered all the bases.
In this series I'm subjecting companies to scrutiny under five headings: prospects, performance, management, safety and valuation. How does Rio Tinto (LSE: RIO) (NYSE: RIO) measure up?
1. Prospects
Rio is a diversified miner, but around 80-85% of earnings come from iron ore and 10% from copper.
The decade-long mining super-cycle is ending. Slowing growth in China and rebalancing of the economy away from infrastructure and toward consumption is tempering demand for both iron ore and copper.
Typical of a cyclical sector, supply has been increasing so iron ore will move into surplus production next year, putting further pressure on prices. Nevertheless, Rio is expanding its giant Australian Pilbara mine. It's a low-cost producer and will weather a downturn better than some rivals.
Hot China Companies To Own For 2014: LDK Solar Co. Ltd.(LDK)
LDK Solar Co., Ltd., together with its subsidiaries, engages in the design, development, manufacture, and marketing of photovoltaic (PV) products; and development of power plant projects. It offers solar-grade and semiconductor-grade polysilicon; and multicrystalline and monocrystalline solar wafers to the manufacturers of solar cells and solar modules. The company also provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers; and sells silicon materials, such as ingots and polysilicon scraps. In addition, it engages in the production and sale of solar cells and modules to developers, distributors, and system integrators; and design and development of solar power projects in Europe, the United States, and China, as well as provides engineering, procurement, and construction services. LDK Solar Co., Ltd. operates in Europe, the Asia Pacific, and North America. The company was founded in 2005 and is based in Xinyu City, t he People?s Republic of China.
Advisors' Opinion:- [By Hawkinvest]
LDK Solar (LDK) is one of the largest solar companies, but it has a balance sheet that concerns me. According to Yahoo Finance, LDK has a debt load of over $3.5 billion and with the industry still struggling, that is too much risk for my tastes. The company expanded aggressively in the past few years, but that expansion now looks poorly timed. When the stock was trading below $4, I thought it made sense to do some bottom-fishing, but the shares have more than doubled from the 52 week low, and look vulnerable at these levels.
Hot China Companies To Own For 2014: Clean Diesel Technologies Inc.(CDTI)
Clean Diesel Technologies, Inc. engages in the manufacture and distribution of emissions control systems and products for heavy duty diesel and light duty vehicle markets. The company operates in two divisions, Heavy Duty Diesel Systems and Catalyst. The Heavy Duty Diesel Systems division designs and manufactures verified exhaust emissions control solutions that are used to reduce exhaust emissions created by on-road, off-road, and stationary diesel and alternative fuel engines, including propane and natural gas. Its products include closed crankcase ventilation systems, diesel oxidation catalysts, diesel particulate filters, Platinum Plus fuel-borne catalysts, ARIS selective catalytic reduction reagents, catalyzed wire mesh diesel particulate filters, alternative fuel products, and exhaust accessories. This division offers its products for original equipment manufacturers of heavy duty diesel equipment, such as mining equipment, vehicles, generator sets, and construction equipment, as well as retrofit customers consisting of school districts, municipalities, and other fleet operators. The Catalyst division produces catalyst formulations using its proprietary MPC technology for gasoline, diesel, and natural gas induced emissions. Its products comprise catalysts for gasoline engines, diesel engines, and energy applications. This division supplies its catalysts to automotive manufacturers and large heavy duty diesel engine manufacturers. The company sells its products through a network of distributors and dealers, and its direct sales force worldwide. Clean Diesel Technologies, Inc. is based in Ventura, California.
Advisors' Opinion:- [By cnAnalyst]
Clean Diesel Technologies, Inc. (NASDAQ:CDTI) is the 3rd best-performing stock last month in this segment of the market. It was up 90.97% for the past month. Its price percentage change was -13.07% year-to-date.
- [By Roberto Pedone]
Another under-$10 stock that's very close to triggering a big breakout trade is Clean Diesel Technologies(CDTI), a vertically integrated global manufacturer and distributor of emissions control systems and products, focused in the heavy duty diesel and light duty vehicle markets. This stock is down huge in 2011, with shares off by over 65%.
If you take a look at the chart for Clean Diesel Technologies, you'll notice that this stock dropped big from its July high of $8 to a recent low of $1.50 a share. Since printing that low, the stock has now moved into sideways pattern between $2.58 and 3.22 a share. A move outside of that shorter-term sideways pattern will likely set this stock up for its next big trend.
Trades should now watch CDTI for a near-term breakout above $3.22 on heavy volume. Look for volume that's tracking in close to or above its three-month average action of 268,131 shares.
>>7 Stocks Rising on Huge Volume
At last check, volume has already hit over 350,000 shares, which is well above the average levels. Traders should now wait and see if the stock can close above $3.22. A close above that level should set this stock up to re-test its 200-day moving average of $4.58, or possibly trend much higher.
You could now be a buyer of this stock above $3.22 if we get that strong close today. I would simply use a mental stop that's a few percentage points below $3.22, or that's just below the 50-day at $3.11 a share. I would then add to any long positions once CDTI takes out $3.60 and then $4.20 on high-volume.
Top 10 Valued Stocks To Own For 2014: AsiaInfo-Linkage Inc.(ASIA)
AsiaInfo-Linkage, Inc. provides telecommunications software solutions and information technology (IT) products and services to telecommunications carriers and other enterprises in the People?s Republic of China. The company offers business and operation support systems product suites, including OpenBilling, a billing solution for telecommunications operators; OpenCRM, a CRM solution suite for telecommunications operators; OpenBOSS, a carrier-class business operation support system solution; OpenBI, a carrier-class operating analysis and decision support system platform; OpenPRM, a system that calculates, manages, and reconciles payment for intercarrier network access. It also provides network management solutions comprising NetXpert, a data and Internet protocol network management solution; and OpenXpert, an integrated telecommunications network management system. In addition, the company offers service applications products, such as Mail Center, an online messaging softwa re; Spam Patrol software for real time anti-spam control; and Net Disk, a network hard disk product, which facilitates Internet-based file transfer, sharing, and management, as well as supports other functions, such as data processing of short message folders and synchronization of mobile devices. Its service applications products also include Internet Short Messaging Gateway, a business support platform for value-added short messaging services; and Device Management Platform that enables mobile operators to manage various mobile devices and perform remote mobile device management, such as remote diagnosis and parameter setup. In addition, it offers software enhancement and maintenance, system integration, and other value-added IT consulting and planning services. The company was formerly known as AsiaInfo Holdings, Inc. and changed its name to AsiaInfo-Linkage, Inc. in July 2010. AsiaInfo-Linkage, Inc. was founded in 1993 and is headquartered in Beijing, the People?s Republ ic of China.
Hot China Companies To Own For 2014: Euro/Yen(EJ)
E-House (China) Holdings Limited, through its subsidiaries, operates as a real estate services company in China. It provides primary real estate agency services, secondary real estate brokerage services, real estate information and consulting services, real estate advertising services, real estate promotional event services, real estate online services, and real estate investment fund management services. The company offers primary real estate agency services to real estate developers. Its secondary real estate brokerage services include offering advisory services on choices of properties; accompanying potential buyers on house viewing trips; drafting purchase contracts; negotiating price and other terms; and providing preliminary proof of title, as well as coordinating with the notary, the bank, and the title transfer agency. The company also provides real estate information services comprising data subscription services and data integration services; and real estate cons ulting services, including land acquisition consulting, development consulting, marketing consulting, and comprehensive solution consulting. In addition, it offers real estate advertising services consisting of advertising design and sales in print and other media; and real estate promotional event services, including securing venues, hiring caters and other various service providers, formulating event themes, and inviting speakers and guests for real estate promotional events. Further, the company provides real estate online services, including real estate news, information, property data, and access to online communities to real estate consumers and participants through local Web sites; and involves in real estate investment fund management activities that consist of investments in China?s real estate sector. E-House (China) Holdings Limited was founded in 2000 and is headquartered in Shanghai, the People?s Republic of China.
Advisors' Opinion:- [By ChemTrade]
Founded in 2000, E-House (EJ) is a leading real estate service company in China. It has a large scope of services, good brand recognition and a strong geographic presence. The company provides primary real estate agency services, secondary real estate brokerage services as well as real estate consulting and information services.
- [By Louis Navellier]
China’s massive citizenry has to be housed, and that’s the job of E-House (China) Holdings (EJ). The company provides primary real estate agency services, secondary real estate brokerage services and real estate consulting and information services.
Its secondary real estate brokerage services include offering advisory services on choices of properties, accompanying potential buyers on house viewing trips, drafting purchase contracts and negotiating purchase prices and other terms. You might say that E-House (China) Holdings is the go-to real estate agent for the Chinese people.
Hey, the housing boom may have fizzled out here in America, but in China housing is all the rage. And judging by the 134% gain in EJ shares over
the past 12 months, investors certainly think this fire-breathing dragon is hot.I rate EJ an A, making it a strong buy.
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